Louisiana Administrative Code
Title 7 - AGRICULTURE AND ANIMALS
Part III - Agricultural Finance
Chapter 1 - General Provisions
Section III-129 - Definition of Program
Universal Citation: LA Admin Code III-129
Current through Register Vol. 50, No. 9, September 20, 2024
A. Under the Act, the issuer is authorized to issue revenue bonds to alleviate the serious shortage of capital and credit available for investment in agriculture, for domestic and export purposes, at interest rates within the financial means of persons engaged in agricultural production and agricultural exports. The Act also authorizes the issuer:
1. to purchase or
make contracts to purchase agricultural loans made by lenders to borrowers;
and
2. to make loans or contract to
make loans to and deposits with certain lending institutions, who will in turn
make agricultural loans to borrowers with the proceeds.
B. The issuer, pursuant to its powers under the Act has authorized the issuance of bonds and intends to use a portion of the proceeds of the bonds:
1. to purchase
without recourse from lenders certain agricultural loans, which are to be
originated by the lenders and purchased by the issuer pursuant to agreements
and which shall be secured by mortgages and with either a letter of credit or a
guaranty; and
2. to enter into
repurchase obligations with certain banks to enable such banks to in turn make
agricultural loans to borrowers. Under the Act, the issuer, prior to the
purchase or contract to purchase agricultural loans from lenders, and prior to
making or contracting to make agricultural loans to certain national banks who
will in turn make loans to borrowers, is required to promulgate certain rules
and regulations with regard to its loan program. These rules and regulations
are intended to comply with this requirement of the Act and with the
Administrative Procedure Act, Louisiana Revised Statutes of 1950, as amended,
Section 49:950 et seq.
AUTHORITY NOTE: Promulgated in accordance with R.S. 3:266(4).
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